How to Enter a Supplier Bill in QuickBooks Online

A bill is a record of money you owe to a supplier for something you've received but haven't paid for yet. Entering it in QBO records the expense in the right period and tracks the outstanding payable so nothing slips through.

What You'll Need

• Access to QuickBooks Online

• The supplier's bill or invoice (digital or physical)

• The bill amount, date, and due date (or payment terms)

Normal Procedure

Entering a bill in QBO

1. Go to + New > Bill.
2. In the Vendor field, select the supplier or type their name to add them.
3. Enter the Bill date (the date on the supplier's invoice — not today's date unless they're the same).
4. Enter the Due date or select the payment terms (e.g., Net 30).
5. In the line items section:

   - Select the Account this expense belongs to (e.g., Office Supplies, Professional Fees, Rent)

   - Add a Description if helpful

   - Enter the Amount

1. If the bill includes GST/HST you can claim as an input tax credit, confirm the tax is applied to the correct line items.
2. Click Save and Close.

The bill is now recorded as an expense and an accounts payable liability. It will appear in your AP aging report until it's paid.

Uploading a receipt or bill document

It's good practice to attach a copy of the original bill:

1. Open the bill you just created.
2. Click Attachments at the bottom of the screen.
3. Upload the PDF or image of the bill.

This keeps your records complete and makes it easier to verify details if questions come up later.

Abnormal Procedures

You accidentally entered the same bill twice.

Check your AP aging report — if you see a duplicate, open the second entry and void it. Don't delete it. Let your Mesa CPA bookkeeper know so they can confirm the reversal is recorded correctly.

The bill includes both taxable and non-taxable items.

Add separate line items for each — one for the taxable amount (with tax applied) and one for the non-taxable amount (with no tax). This ensures your GST/HST input tax credits are calculated correctly.

You received a bill in a foreign currency.

See your Mesa CPA bookkeeper before entering it. Multi-currency bills require the exchange rate to be recorded correctly and multi-currency to be enabled in your QBO settings.

The bill is for a fixed asset (equipment, vehicle, etc.) rather than an operating expense.

Don't code it to an expense account. Fixed assets get recorded differently — see: How to Record the Purchase of a Fixed Asset. Let your bookkeeper know if you're unsure.

FAQ

What's the difference between entering a bill and entering an expense?

A bill is for something you'll pay later — entering it creates an accounts payable. An expense (+ New > Expense) is for something you're paying immediately. Use bills when the supplier has given you payment terms; use expenses for same-day purchases.

Do I need to enter every small purchase as a bill?

No. Small purchases paid immediately by card or bank transfer should be entered as expenses, not bills. Bills are for situations where you're paying at a later date.

What if I don't have the bill yet but I know the expense happened?

Enter an estimate of the amount using an accrual entry, or wait until you have the bill. Your Mesa CPA bookkeeper will advise on the correct approach for your situation — it depends on whether the expense needs to be in a specific period for tax purposes.

How do I know which expense account to use?

Refer to your Chart of Accounts. If you're unsure, ask your Mesa CPA bookkeeper — they'd rather set it up correctly the first time than reclassify it later.